US Congressmen Steven Horsford and Max Miller have reintroduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act, which seeks to update the country's approach to cryptocurrency and taxes. The bill, initially released in December, was revised and re-released on March 26 for further review. The revised version includes changes to the 'de minimis' gains section, which allows for small transactions to be exempt from tax reporting. The industry has long advocated for a 'de minimis' exemption to make it easier for individuals to use cryptocurrency for small transactions without having to report capital gains or losses.
The revised bill also addresses wash sale rules for digital asset transactions and draws a distinction between 'passive staking' and trading activities. Although the next steps for the bill are uncertain, industry participants expect a strong push to include cryptocurrency in any upcoming tax legislation.